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Summary BTEC Business Level 3: Unit 1 - Exploring Businesses (Distinction*)
Typology: Exams
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and businesses.
information given verbally.
record. It can refer to writing such as a formal written feedback.
government putting measures in place to reduce public spending.
public for consumption rather than resale.
environmental.
of the money.
having to pay tax on it.)
which you mostly have no control.
wrong or illegal.
usually sold direct to the retailer to sell on at a profit.
often overseas to cut costs.
one point to another.
possibly even at a loss to the business. This is done to attract additional sales and increase profits and market share.
perspectives.
accident.
or product that is exclusive to your business.
product.
and may have to pay for losses made by the business out of their own pocket.
there owners are not personally liable for the firm's debts.
natural products.
goods.
customers.
or longer term.
the vision.
business.
Business-profit
it has to be registered with HMRC Maintain Record Unlimited liability
earned and the amount spent in buying, operating, or producing something
All decision making alone Keep all profits private More motivation Fast decisions Disadvantage- Unlimited Liability Harder to get loan Very tough to take decision Difficult to find cover when ill
two or more people share the costs and responsibilities unlimited liability Agent, principle, relationship
inexpensive to set up easy to organize share responsiblities share time shifts and work hours each brings their own skills DISADVANTAGE have to depend on others responsibility share profits conflicts with parner different ethics financial risk
together and share all profits and losses.
consumption of goods and services.
responsible not just for the profits but also the losses, such as debts and claims against the business. This means that all owners are responsible for any shortfall of money if the business has insufficient funds. This could mean all savings and possessions including car, house, etc are at risk.
(or cap) placed upon the amount that can be claimed. This type of liability might seem to be the obvious choice, but setting up in business is relatively easy and the risks attached can be overlooked, especially without the benefit of knowledge gained through studying.
nature of their business and the product or service they provide. These sectors are known as primary, secondary, tertiary and quaternary and are the four stages of the journey from sourcing a material to being ready for the customer.
builder who requires the roof trusses for a house - the builder relies on the primary sector to source the raw materials and on the secondary sector to prepare those materials from their raw state so that they can form the frame for a roof.
produced by the primary sector so that they can be sold on. For example, farmed vegetables, mined diamonds or coal, felled wood and caught fish, all need to be
prepared or manufactured in some way by the secondary sector so that they are fit for sale.
store and distribute the goods which have been manufactured. It also provides insurances against, for example, damage or possibly late delivery. Businesses often rely on advertising to promote their products - another service provided by the tertiary sector.
working in the quaternary sector currently account for approximately 75 per cent of the UK workforce. This sector also provides support services and can appear to overlap the tertiary sector. Examples include the communications infrastructure for day to day operations, such as telephoning and emailing.
range covered by that business.
and serves just the local area, such as an independent village shop or perhaps a pub which is owned by local residents.
nationally fairly frequently and possibly have not considered this before. Some
known as revenue.
and services.
availability of products and services which influence costs.
as every lesson you attend has aims defining the purpose and outcome of the lesson and objectives which identify how to achieve the aim.
external. In other words, those within the business, such as its employees, and those outside the business, including customers and anyone else with an interest in the business. They all have a stake in the business.
▸ employees (reporting to managers) ▸ owners (overall responsibility for the business).
▸ Lenders
▸ Competitors ▸ Debtors ▸ Creditors ▸ Customers ▸ Government agencies and departments ▸ Communities ▸ Pressure groups ▸ Interest groups
compliments, suggestions and complaints.
comply with relevant legislation.
the number of shares they hold in a business.
and businesses.
business they contribute to the success of the business, whether it is as a direct or indirect result of their actions.